Scratch: a programming language for everyone. Create interactive stories, games, music and art - and share them online. Developed by the University of Michigan.
Website: http://scratch.mit.edu/

Schools use Scratch to enable all children to create products that use sound, movement, images and titles to create projects that showcase learnings in the curriculum. Enables all children to succeed, but is an excellent tool for gifted students. When complete, students can upload their products to a secure website. Also beneficial is the ability to download other students projects and see how they put them together!

Excellent Resource Site: http://www.smsn.vic.edu.au/ictguy/index.php/scratch-resources/

Scratch Cards - http://info.scratch.mit.edu/Support/Scratch_Cards
A great way to start with kids - the card has the activity and the reverse has the blocks you will need to make it work.

Embedding your Scratch pages in a website - http://scratch.mit.edu/forums/viewtopic.php?id=248

Create a Fish Game - http://www.redware.com/scratch/fish.html